Various Functions Performed by Treasury Management

Treasury Management is considered to be a major constituent of business processes in an enterprise. Due to quick changes in technology and regulation in the current financial sector, the overall business landscape has become very competitive in nature. There is a lot of pressure on companies to properly manage cash.

It is the duty of treasury department of a business to ensure effective execution of strategic money management processes. It should plan, organize and also control all the cash assets to fulfill the monetary objectives of a business. These goals can help in minimizing the interest cost, maximizing returns, or maximizing cash liquidity. Let us see the various functions of treasury management that help in achieving these goals.

Primary functions of a treasury department

Liquidity and Cash Management

This is most important functions provided by treasury management. Cash management aims at maximizing the available amount of cash and reduces underperformances quickly and at very low processing cost. This function maximizes the advantages of surplus funds and reduces the price of shortfalls via meticulous investment and measured borrowing.

Risk Management and Liquidity in Treasury

The evaluation and management of possible threats to liquidity ensure that a business can meet its monetary obligations. Management of liquidity risk manages risks and simultaneously operates with cash and liquidity management. This makes sure that the business has adequate cash to fulfill its financial obligation.

Corporate Finance

It is concerned with short as well as long-term investment and financial decisions to maximize value to its shareholders. Corporate finance encompasses all the fiscal decisions of any business. Such decisions make corporate finance very important aspect of business management.

Advanced forecasting and cash flow

Identifying cash surplus and deficits in coming months help in better planning of the future. Management of cash flow is a key component of treasury management. It is critical for short-term as well as long-term success of any business.

Treasury management software and systems

The automation of critical financial processes makes use of systems that ease communication between banking partners and treasury departments.

Trade Finance Software

This smart solution development assists businesses to locate trade finance solutions. It helps them in dealing with factoring payments, assets and accounts receivables.

Trade Fiscal Supply Chain Management

This function helps in providing financing for different types of stages of a supply chain.


The above guide equips you with all the information regarding treasury management, right from maintaining cash liquidity, and management of risks to advanced forecasting of cash flow.